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An American firm has been billed 1,000,000,000 payable in 1 year time Current spot and forward rate There are another 5 possible exchange rate scenarios

An American firm has been billed 1,000,000,000 payable in 1 year time

Current spot and forward rate

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There are another 5 possible exchange rate scenarios in 1 year

$1.00

$1.10

$1.18

$1.20

$1.30

What would the hedged position be for the firm for the 5 possible 1 year exchange rate scenarios?

\begin{tabular}{|l|l|} \hline Spot exchange rate ($/) & 1.20 \\ \hline Forward exchange rate ($/)1 year & 1.18 \\ \hline \end{tabular}

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